Global venture capital industry has trebled in size to $160 billion in a decade

Global venture capital industry has trebled in size to $160 billion in a decade

The global venture capital industry has trebled in size to $160bn (£124bn) over the past decade, according to new research. 

The amount of capital being invested in the sector globally swelled from $53bn in 2008 to $160bn in 2017. The growth has been led by Asia, where the share of global VC capital increased from 4pc in 2008, to 27pc in 2017.

Alongside the record sums being invested in 2017, the total deal count has more than doubled in the same time period, from 6,990 to 14,727, analysts found. 

The UK retained its crown as the European leader in investment, with Britain’s share of Europe's venture capital industry increasing from 31 per cent to 42 per cent in the last 10 years, the research by London-based Octopus Ventures revealed.   

The total amount of capital invested in the UK was at $2.2bn (£1.7bn) in 2008 compared to $7.9bn (£6.1bn) last year, equating to an increase of 255 per cent. Comparatively, investments in France have only doubled over the last decade, taking the total amount invested to $2bn (£1.55bn) in 2017.

However, a different picture was witnessed in the US, which remains the world leader but is less dominant than previously.

Its share of the global VC market decreased significantly from 79pc in 2008 to 53pc last year.

“There was a time when if you were in tech, it was inevitable that you would head to the Bay Area. Today, while Silicon Valley retains its leadership position, it no longer has a monopoly on scale, expertise or know-how. Entrepreneurs can now access the talent, advice and resources they need remotely,” said Alliott Cole, chief executive of Octopus Ventures. 

Start-ups in the UK have recently won large investments from venture capital firms from across the world.

Last month, challenger bank Monzo raised £85m from US venture capital investors to hit a landmark valuation of over £1bn, making it the latest UK tech start-up to pass the "unicorn" milestone.

Powdered food start-up Huel, a developer of so-called "future food", also secured £20m in funding last month as it seeks to expand to the US and across Europe.

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